What to Do if Your ITR Filing Deadline is Extended: Benefits, Risks, and Planning

The Central Board of Direct Taxes (CBDT) has extended the Income Tax Return (ITR) filing deadline for the financial year 2024–25 (Assessment Year 2025-26). This extension provides valuable extra time for taxpayers to file their returns, but it also comes with both benefits and risks. The additional time allows taxpayers to ensure accurate filings, gather documents, and avoid last-minute errors. However, it may also lead to procrastination, increasing the risk of missing the new deadline. Taxpayers need to plan effectively to take advantage of this extension, ensuring timely submission and minimizing potential penalties. In this guide, we will explore the key benefits of the extended deadline, such as the opportunity to carry forward losses and avoid penalties, along with the risks, such as complacency and technical glitches. We’ll also provide practical tips on how to plan your filing to ensure a smooth and hassle-free experience.

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Table of Contents

What Happens When the ITR Filing Deadline is Extended?

Who Does the Extension Apply To?

Benefits of the Extended ITR Filing Deadline

Risks of Relying on the Extension

Planning Your ITR Filing After the Extension

Key Deadlines for AY 2025–26

Conclusion

FAQs

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What Happens When the ITR Filing Deadline is Extended?

An extended Income Tax Return (ITR) filing deadline offers taxpayers additional time to ensure that their filings are accurate, complete, and aligned with the latest tax regulations. The extra time allows individuals and businesses to gather all necessary documents such as Form 16, TDS certificates, and proof of deductions, which are essential for accurate filing. It also offers a chance to address discrepancies in TDS credits and other financial details, reducing the chances of errors. However, this extension comes with the risk of procrastination. While more time is available, it can lead some taxpayers to delay the process further, which may result in rushed filings near the extended deadline. Thus, the extension provides an opportunity to prepare carefully but requires discipline and planning to avoid pitfalls such as late filings, penalties, or missed deductions.

Who Does the Extension Apply To?

The extension of the ITR filing deadline primarily applies to non-audit taxpayers. This includes individuals, Hindu Undivided Families (HUFs), and small businesses that do not fall under the statutory audit requirement of Section 44AB of the Income Tax Act, 1961. Non-audit taxpayers benefit from the extended deadline, as they are not subject to rigorous audit procedures and additional paperwork. It’s important to note that other categories of taxpayers, including companies, professionals whose turnover exceeds the prescribed audit thresholds, and entities involved in transfer pricing cases, must continue adhering to the original deadlines. These businesses and professionals are not eligible for the extension and must file by their respective deadlines, which could be as late as September 30, October 31, or November 30, 2025, depending on the specific case.

Benefits of the Extended ITR Filing Deadline

• More Time for Accurate Filing: The primary advantage of the extended deadline is that it provides more time to organize and verify the necessary documentation. Taxpayers can ensure that all incomes, deductions, and credits are correctly reported, thereby reducing the risk of errors that could lead to penalties or delays in processing.
  

• Compliance with New Forms: The ITR forms for the financial year 2024–25 have undergone significant changes. These updates may require additional time for both taxpayers and professionals to familiarize themselves with new requirements, such as changes to allowable deductions or reporting structures. The extension ensures that these changes can be fully integrated into filings.
  

• Reduced Last-Minute Pressure: With the new extended deadline, taxpayers can avoid the pressure and stress that comes with filing at the last minute. This reduces the chances of errors caused by hasty filings, such as missing key documents or entering incorrect data.
  

• Carry Forward of Losses: Filing by the extended deadline allows taxpayers to carry forward business or capital losses, which can then be set off against future incomes. If the deadline is missed, these losses may not be carried forward, leading to missed tax-saving opportunities in subsequent years.
  

• No Interest or Late Fees (if filed on time): Taxpayers who file by the extended deadline, September 15, 2025, will avoid incurring interest charges under Section 234A and late fees under Section 234F, provided they pay any due taxes on time. This ensures that taxpayers are not penalized financially for filing late.
  

Risks of Relying on the Extension

• Complacency and Delays: While the extension may seem like a benefit, it can also lead to procrastination. Taxpayers might push their filing to the last minute, which could lead to errors, oversights, and ultimately, the risk of missing the new deadline. Staying on top of filing requirements is crucial to avoid unnecessary stress and penalties.
  

• Penalty for Missing the Extended Deadline: If the new deadline of September 15, 2025, is missed, taxpayers will still be able to file a belated return, but they will face a late fee of up to ₹5,000 under Section 234F. Moreover, they may lose the opportunity to carry forward certain losses or claim deductions linked to timely filing.
  

• Loss of Benefits: Some benefits, such as the ability to carry forward business losses or claim specific deductions, are only available when returns are filed by the original or extended deadline. Missing the deadline means forfeiting these opportunities, which can increase your tax liabilities.
  

• Technical Glitches: As the new deadline approaches, the e-filing portals may experience heavy traffic. This increases the likelihood of portal slowdowns, errors, or technical glitches. Last-minute filers are especially vulnerable to these problems, making it harder to file returns on time.
  

Planning Your ITR Filing After the Extension

• Organize Documents Early: The key to smooth filing is early preparation. Start gathering essential documents such as Form 16, TDS certificates, proof of investments, and bank statements. By having everything ready ahead of time, you can avoid the stress of scrambling at the last moment.
  

• Check TDS Credits: Before filing, verify that all TDS credits are correctly reflected in your Form 26AS and Annual Information Statement (AIS). Discrepancies could lead to incorrect filings, delaying your return processing or resulting in penalties.
  

• Use Updated ITR Forms: Ensure you are filing the correct ITR form based on your income and filing status. The updated forms may have different requirements, so it is crucial to stay informed and choose the right form for your situation.
  

• Consult a Tax Professional: For complex tax situations, it’s advisable to seek professional help. A tax consultant can assist in identifying potential deductions and ensure that all compliance requirements are met, reducing the risk of errors.
  

• Set Internal Deadlines:

  Aim to finish your return a week before the official deadline. Setting internal deadlines can help prevent the rush toward the end, allowing time to resolve any issues that may arise with the filing process.

Key Deadlines for AY 2025–26

Filing Type	Due Date
Non-audit taxpayers (ITR-1/4)	15 September 2025
Audit cases (business/profession)	31 October 2025
Transfer pricing cases	30 November 2025
Belated/Revised Return	31 December 2025
Updated Return (ITR-U)	31 March 2026

Conclusion

The extended ITR filing deadline provides taxpayers with the opportunity to file their returns with more accuracy and less stress. However, it’s important to avoid complacency and take full advantage of the extra time by preparing early and filing on time. Proactive planning, organization, and professional advice can ensure that you meet the new deadline successfully, minimizing any risks or penalties. For anyone looking for assistance in tax filing, it is highly recommended to download the TaxBuddy mobile app for a simplified, secure, and hassle-free experience.

FAQs

Q1. What happens if I miss the extended deadline of September 15, 2025?

If you miss the extended deadline of September 15, 2025, you can still file a belated return by December 31, 2025. However, you will be subject to a late fee under Section 234F, which can be as high as ₹5,000. In addition to this, you might also be liable for interest charges under Section 234A if any taxes remain unpaid. Filing late may also limit your ability to claim certain benefits, such as carrying forward losses or making certain deductions. It’s crucial to file as early as possible to avoid additional penalties and complications.

Q2. Can I still revise my return after filing?

Yes, you can revise your return until December 31, 2025. This is useful if you discover any mistakes or omissions in your initial filing, such as incorrect income details, missed deductions, or erroneous TDS credits. It’s important to note that revised returns are only allowed before the assessment is completed. Once the tax authorities have completed the assessment of your return, you can no longer revise it.

Q3. Are all taxpayers eligible for the extension?

No, the extension applies only to non-audit taxpayers. This includes individuals, Hindu Undivided Families (HUFs), and small businesses not subject to a statutory audit under Section 44AB of the Income Tax Act. Other categories, such as companies, professionals with a turnover above audit thresholds, and businesses involved in transfer pricing cases, must adhere to their original deadlines, which can extend into October and November 2025, depending on the case. It's important to confirm your eligibility before planning around the extended deadline.

Q4. Do I need to pay tax before filing the return?

Yes, it is mandatory to pay any self-assessment tax due before filing your return. The payment should be made through challan 280 to avoid interest charges under Section 234A. Failing to pay the due tax before filing your return will result in the calculation of additional interest charges, which will increase the overall tax liability. Make sure to pay your taxes on time to prevent any further complications and penalties when filing your return.

Q5. How can I ensure a smooth filing process?

To ensure a smooth filing process, start by organizing all your documents well in advance. These include Form 16, TDS certificates, investment proofs, and any other supporting documents related to income and deductions. Double-check your TDS credits and make sure they are accurately reflected in Form 26AS and the Annual Information Statement (AIS). It’s also important to use the correct ITR form based on your income sources and status. Finally, avoid last-minute filings to prevent technical glitches or delays. A proactive approach will help ensure a hassle-free experience.

Q6. What should I do if I miss the filing deadline?

If you miss the filing deadline, you can still file a belated return. However, the return will be subject to late fees, and you may lose certain benefits tied to timely filing, such as the ability to carry forward losses or claim certain deductions. It’s always advisable to file as early as possible to avoid additional penalties. If you miss the original or extended deadline, file your return at the earliest to minimize the financial impact.

Q7. Can I carry forward losses if I file after the extended deadline?

No, you cannot carry forward business or capital losses if you miss the extended deadline. Filing by the due date is necessary to carry forward such losses to future years. Missing the deadline means you lose the opportunity to offset these losses against future incomes, which could increase your tax liability. It’s critical to file on time to make full use of the tax benefits available.

Q8. What are the new ITR forms for AY 2025-26?

The ITR forms for AY 2025-26 have seen several updates, particularly for business owners, professionals, and taxpayers with more complex financial situations. New forms may include additional sections for reporting capital gains, foreign income, and detailed deductions. Taxpayers should familiarize themselves with the latest forms to ensure all required information is accurately captured. Keep an eye on the e-filing portal for updates and specific instructions regarding which forms apply to your situation.

Q9. How do I check if my TDS has been credited correctly?

To check if your TDS has been credited correctly, you can verify the details in your Form 26AS and the Annual Information Statement (AIS) on the Income Tax Department’s e-filing portal. These documents contain the TDS amounts deducted and deposited by your employer or other deductors. If you notice any discrepancies, it’s important to contact the deductor (e.g., your employer or bank) to resolve the issue before filing your return.

Q10. Can I file my return with TaxBuddy?

Yes, TaxBuddy offers an easy-to-use platform for filing returns. Whether you choose to file on your own using the self-filing option or seek expert assistance, TaxBuddy provides the tools and guidance you need to complete your filing accurately. The platform also supports document management, tax calculations, and e-verification, making the entire process simple and secure.

Q11. What is the last date for ITR filing in AY 2025–26?

The new deadline for non-audit taxpayers is September 15, 2025. However, taxpayers who are required to undergo an audit or are involved in transfer pricing cases must adhere to their original deadlines, which vary depending on their filing status. Audit cases must file by October 31, and transfer pricing cases must file by November 30, 2025. It’s important to know your category and file within the correct timeframe.

Q12. Can I use TaxBuddy to avoid technical issues during filing?

Yes, TaxBuddy offers a secure and reliable platform that minimizes the risk of technical issues during filing. With its user-friendly interface, real-time updates, and expert support, TaxBuddy ensures that your filing process is smooth and hassle-free. The platform also reduces the risk of errors caused by system glitches or last-minute filing, giving you peace of mind during tax season.